Samir Arora Slams ‘Unfair’ IPO Allotments, Urges SEBI to Step In as Meesho Row Deepens

Prominent fund manager Samir Arora has ignited a fresh debate on fairness in India’s booming IPO market, calling for regulatory intervention after allegations of skewed institutional allotments in recent public issues.

Taking to X, the Helios Capital founder criticized the existing allotment framework, arguing that high-demand IPO shares often go to a privileged few rather than being distributed on merit. Arora wrote that regulators “must intervene” to ensure that allocations—particularly in oversubscribed issues—are not treated as “gifts” handed to select large funds by brokers and investment banking intermediaries.

His remark comes on the heels of the Meesho IPO controversy, where several foreign and domestic institutions reportedly withdrew from the anchor book, contending that the distribution favoured SBI Funds Management despite multiple investors placing comparable bids. The episode has fuelled questions about whether discretionary anchor allotments are inadvertently tilting the playing field.

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Adding to the discussion, investor Mr. Bhatia shared a detailed post on X, echoing Arora’s concerns about last-minute bidding distortions. He clarified that genuine early-commitment funds like SBI MF should not be targeted, stressing that the real issue lies with institutions that inflate their bids at the eleventh hour and add no real value to price discovery. Bhatia suggested that anchor lists be finalised and announced 30 days before an IPO opens — ensuring only committed, price-setting investors are part of the process and discouraging opportunistic, late-stage participation.

Industry pundits, however, reckon that SEBI is unlikely to interfere unless rules are expressly violated. Anchor allocations, they argue, are commercial negotiations between issuers, bankers, and institutions—areas where regulators typically tread cautiously.

In a follow-up note, Arora clarified that his criticism was not aimed at SBI MF. Instead, he took issue with funds that inflate their orders at the eleventh hour yet do little to stabilise the IPO post-listing. To tighten the system, he proposed that anchor lists be finalised and disclosed at least 30 days in advance, giving markets a clearer picture of intent and participation.

The episode has resonated across Dalal Street, where smaller investors have long complained of poor odds in oversubscribed IPOs.